Firstly, if you want to share a folder in Workspace then it is not possible. However, you can create folder and add files in that folder and after that select all the files within that folder and share it.
Seconly, folders cannot be uploaded in Microsoft Office Live Workspace. However, you can install Silverlight at your computer and upload multiple documents at a time.
For more information regarding this, visit the link given below:
http://ask.officelive.com/workspace/qna/t/1012.aspx